Pbb issues €500m mortgage Pfandbrief at 0.25% coupon

German property lender pbb Deutsche Pfandbriefbank said on Thursday that it has placed a €500 mln mortgage Pfandbrief with a five-year term and a coupon of 0.25%.

Deutsche Pfandbriefbank is paying a 14 basis points spread below midswaps.

Based on the re-offer price of 99.819% the Pfandbrief has a 0.287% yield.

Pbb said the Pfandbrief met 'with a very positive market response' and was heavily oversubscribed with orders totalling more than €1.1 bn. Germany accounted for the largest share of the placements (70%) followed by Middle Eastern countries and the UK.

The issue was arranged by a syndicate comprising Bayern LB, Commerzbank, Deutsche Bank, Nord LB, RBS und Bankhaus Lampe.